Midday Market Roundup for Thursday, April 3, 2025

Hello, everyone. Let’s examine the top four financial and global economic news stories for April 3, 2025, as of midday.

Global Markets Plunge in a Momentous Event Amid Trump’s Sweeping Tariffs

Global financial markets are reeling from the profound impact of President Donald Trump’s far-reaching tariffs on nearly all imports into the United States. The Dow Jones Industrial Average has plummeted by 1,570 points (3.7%), while the Nasdaq Composite has experienced a 5.6% drop, its worst performance since March 2020. European and Asian markets have mirrored these declines, with Germany’s DAX index down 2.29% and Japan’s Nikkei 225 falling 2.77%. Chris Weston, Head of Research at Pepperstone, described the market reaction as “one of the sharpest selloffs in recent years,” driven by fears of a global recession. Economists warn that these tariffs could disrupt supply chains, inflate costs, and hinder economic growth globally.

Gold Prices Soar to Unprecedented Heights as Investors Seek Safe Havens

Gold prices have skyrocketed to an unprecedented high of $3,160 per ounce as investors flock to safe-haven assets amidst escalating trade tensions. Analysts at Goldman Sachs have revised their gold price forecast upwards, citing robust demand from central banks and exchange-traded funds (ETFs). Treasury yields have also experienced a sharp decline, with the yield on the 10-year Treasury falling to its lowest level since October. Chief Investment Strategist at Sanctuary Wealth, Mary Bartels, noted that “gold’s rally reflects heightened investor anxiety about potential stagflation and recession risks.”

U.S. Services Sector Growth Slows Amid Tariff Uncertainty

The U.S. services sector has recorded its slowest growth in nine months in March, according to the Institute for Supply Management (ISM). The ISM services index has fallen to 50.8%, down from 53.5% in February, signaling near-stagnant growth. Steve Miller, Chairman of the ISM Services Business Survey Committee, reported that “a significant number of respondents cited cost increases tied to tariff activity.” Economists warn that prolonged trade tensions could further slow growth in the services sector, which accounts for over 80% of U.S. employment.

Tech Stocks Lead Market Declines, Exposing Their Vulnerability

Tech stocks have been hit hard by fears of supply chain disruptions caused by Trump’s tariffs. Apple shares dropped by 8.7%, wiping out nearly $300 billion in market capitalization, while other major players like Nike and Ralph Lauren saw double-digit declines. Hetts Janus, Global Head of Multi-Asset at Janus Henderson Investors, commented that “the tech sector is particularly vulnerable to international trade disruptions and rising costs.” Analysts at JPMorgan warned that if these tariffs persist, they could push both the U.S. and global economies into recession by late 2025.

In summary, today’s financial landscape is marked by extreme volatility as markets react to sweeping trade policy changes. Investors are bracing for further economic fallout while seeking refuge in safe-haven assets like gold and bonds.

Sources:

• Chris Weston, Head of Research at Pepperstone, on global market reactions.

• Goldman Sachs, on gold price forecasts and safe-haven demand.

• Steve Miller, ISM Services Business Survey Committee Chairman, on U.S. services sector performance.

• Hetts Janus, Global Head of Multi-Asset at Janus Henderson Investors, on tech stock vulnerabilities.

Disclosure:

This article provides general information about current financial and global economic news. It is not intended to be personalized investment advice or a solicitation to buy or sell securities. The information herein is based on publicly available data and should not be considered investment recommendations.

Important Disclosures:

1. No Compensation Received: No compensation was received from any individual or entity for the preparation or publication of this article.

2. No Client Relationship: The author has no client relationship with any individuals or entities mentioned in this article.

3. No Conflicts of Interest: No known conflicts of interest exist between the author and any individuals or entities mentioned in this article.

4. General Information Only: This article is for informational purposes only and should not be relied upon for making investment decisions. Readers are advised to consult a financial advisor before making investment decisions.

5. No Endorsements: Including any names or sources in this article does not constitute an endorsement of their views or opinions.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the opinions of any organization or individual mentioned. The information provided is subject to change and may not reflect the current market situation.

Sources:

• Chris Weston on Global Market Reactions
  https://www.cnn.com/2025/04/03/investing/us-stock-market/index.html
• Goldman Sachs on Gold Prices
  https://www.reuters.com/markets/global-markets-wrapup-1pix-2025-04-03/
• Steve Miller on U.S. Services Sector Performance
  https://www.morningstar.com/news/marketwatch/20250403262/us-economy-slowed-in-march-and-prices-rose-even-before-liberation-day-tariffs-ism-finds
• Hetts Janus on Tech Stock Vulnerabilities
  https://www.usnews.com/news/economy/articles/2025-04-03/markets-crash-economists-warn-of-recession-as-trump-announces-sweeping-import-tariffs-on-many-countries

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